An investor bought common stock of Blackstone Company on several occasions at the following prices. The average price per share at which the investor bought these shares of common stock was closest to:
A)$28.00
B)$29.43
C)$30.67
D)$31.00

Question

An investor bought common stock of Blackstone Company on several occasions at the following prices.  The average price per share at which the investor bought these shares of common stock was closest to:
A)$28.00 
B)$29.43 
C)$30.67 
D)$31.00

Quizplus · Accepted Answer

To find the average price per share, we need to add up the total cost of all shares bought and divide it by the total number of shares bought. 
Total cost = (200*$28) + (150*$30) + (100*$31) = $5600 + $4500 + $3100 = $13200
Total shares bought = 200 + 150 + 100 = 450
Average price per share = Total cost / Total shares = $13200 / 450 = $29.33, which is closest to option B.

An Investor Bought Common Stock of Blackstone Company on Several